How does PAX Gold work?

PAX Gold (PAXG) is a digital asset backed by physical gold.

It is an Ethereum-based token that is redeemable for one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar. The gold bars are stored in professional vault facilities and are audited on a regular basis to ensure that the amount of PAXG in circulation is backed by the corresponding amount of physical gold. The PAX Gold project was created to make it easier for people to invest in gold without having to buy and store physical bars.

By using blockchain technology, PAX Gold allows users to purchase, store, and trade gold with ease. The project also offers users the ability to transfer their holdings between wallets and exchanges quickly and securely. To purchase PAX Gold, users must first create an account on the Paxos website.

Once they have done so, they can then deposit funds into their account via bank transfer or credit/debit card. Once the funds have been deposited, users can then use them to purchase PAXG tokens at the current market rate. The tokens are then stored in a secure wallet provided by Paxos or transferred to another wallet or exchange of their choice.

When it comes time to redeem their tokens for physical gold, users can do so through Paxos’s redemption portal. They will need to provide proof of identity and ownership of the tokens before they can redeem them for physical gold bars stored in professional vault facilities around the world. Overall, PAX Gold provides investors with an easy way to invest in physical gold without having to buy and store it themselves.

It also offers investors greater liquidity than traditional investments in physical gold as they can easily transfer their holdings between wallets and exchanges quickly and securely.